American businesses have begun filing claims for what could amount to $175 billion in tariff refunds after the US Supreme Court struck down the bulk of the Trump administration’s sweeping import taxes in February 2026. The US Customs and Border Protection launched the CAPE Phase 1 portal on April 20, enabling companies to formally file for refunds on duties deemed illegally collected — and the rush to submit claims immediately overwhelmed the system’s servers on its first day, with more than 12,000 applications filed in the first four hours alone.
How Did the Supreme Court Strike Down Trump’s Tariffs?
In a 6-3 ruling handed down on February 14, 2026, the Supreme Court held that the Trump administration’s use of the International Emergency Economic Powers Act (IEEPA) to impose broad, unilateral tariffs on imports from over 60 countries exceeded the President’s statutory authority. The court found that while IEEPA grants emergency economic powers, it does not extend to a wholesale reimposition of a global tariff regime without Congressional authorisation. The ruling immediately invalidated tariffs on hundreds of product categories, representing between $140 billion and $175 billion in duties collected since January 2025 that must now be refunded. The administration has announced it will comply with the ruling while introducing new, more narrowly tailored tariffs under separate statutory authorities, including new 10–50% duties on steel, aluminium, and copper signed on April 2.
“This is one of the largest government refund programmes in American history. The complexity of supply chains means many smaller businesses that paid tariffs indirectly — through higher supplier costs — will struggle to document and recover what they’re owed.”
— Kyle Pomerleau, Senior Fellow, American Enterprise Institute
The CAPE (Customs Automated Processing for Electronically-filed refund claims) portal went live at 8 a.m. EDT on April 20 to immediate, overwhelming demand. Companies importing electronics, apparel, auto parts, and industrial machinery are among those eligible, as these categories carried some of the highest effective tariff rates under the struck-down rules. The Treasury Department has indicated refunds will be processed on a rolling basis, with straightforward claims expected to be settled within 90 to 120 days. Businesses that filed on day one could see their first payments as early as July 2026.
Who Is Eligible — and How Do You Actually File?
Eligibility is determined by whether the specific tariff classification under which your goods were imported has been identified as invalid by CBP’s post-ruling guidance. Importers of record — the companies legally responsible for the customs entry at the time of importation — are the primary eligible filers. Third-party logistics providers and retailers who paid duties passed through by importers face a more complex situation; CBP has indicated it is developing guidance for indirect claimants, but no timeline has been confirmed. To file, businesses need to access the ACE (Automated Commercial Environment) Portal and navigate to the new CAPE module. Claims require documentation including entry numbers, the specific tariff classification, proof of payment, and a calculation of the overpaid duty amount. Trade law experts are strongly recommending companies engage a licensed customs broker before filing, as errors in classification can delay or disqualify refund claims.
The political dimension of the refund programme is already generating controversy. Republican lawmakers who supported the original tariffs are pressing the administration to slow-walk refund processing, arguing the Supreme Court ruling was “judicially activist.” Meanwhile, trade groups representing retailers and manufacturers are pushing for expedited processing, noting that many businesses are carrying inventory costs tied to tariff-inflated input prices that have been crippling cash flow. The National Retail Federation estimated its members are collectively owed over $28 billion in refunds. The US Chamber of Commerce has called on Congress to pass legislation authorising a 45-day expedited processing track for claims under $500,000, which would cover the vast majority of small and mid-sized importers.
What This Means For You
If your business imported goods between January 2025 and February 2026, check with your customs broker or trade compliance team this week to determine your eligibility. Even partial refunds on tariff-inflated input costs can meaningfully improve margins heading into the second half of 2026. For consumers, the court ruling should — over the next six to twelve months — translate into modest price relief on electronics, home goods, and clothing as importers pass savings back through the supply chain. Don’t expect overnight changes at the register, but the structural cost pressure that drove consumer prices up through 2025 is now beginning to unwind. Keep an eye on the upcoming April 28 USTR hearings on new Section 301 tariffs targeting Chinese manufacturing, which could partially offset some of those savings.
Sources
- Al Jazeera — US launches tariff refund system as thousands of importers line up
- Penn Wharton Budget Model — Effective Tariff Rates and Revenues (April 2026)
- White House — Trump Strengthens Tariffs on Steel, Aluminum, and Copper
